Why borrow to invest?
By borrowing to invest (also known as gearing) you can boost your investment power by building an investment portfolio larger than if you did using just your savings.
Gearing can be used for a range of goals including wealth creation, saving for a home deposit, a trip overseas, children’s education or saving outside super. Similar to gearing into property via a mortgage, you can also gear into the sharemarket with a margin loan.
What is a margin loan?
A margin loan is a line of credit that allows you to borrow money to invest in a wide variety of acceptable investments - such as shares, ETFs and unlisted managed funds - to gain additional exposure to dividends, franking credits and the potential to accelerate investment returns.
You can leverage an existing portfolio or create a new one to help meet your financial goals.
Our range of products provide our clients the flexibility to choose the loan that best suits their individual investment needs and preferences.
The Leveraged Margin Loan is a flexible loan account offering a range of interest rate options, 3,000+ acceptable investments such as shares, ETFs and unlisted managed funds plus the ability to either manage the loan directly or use the services of a stockbroker/financial adviser of your choice.
Investment Funds Multiplier
Exclusive to Leveraged, the Investment Funds Multiplier (IFM) is a margin loan with built in limits and controls. In the event of a significant fall in portfolio value, you can reduce the loan through monthly repayments until the gearing ratio is restored to an acceptable level.
Financial markets update
With the recent easing of restrictions and a pick up in business activity, stock markets are continuing to recover and volatility levels seem to be normalising. In this month’s Market Update, David Robertson Head of Economic and Market Research for Bendigo Bank shares his thoughts on key indicators and our road to economic recovery.
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